SOURCE: Fountain Powerboat Industries
November 14, 2008 10:00 ET
Fountain Powerboats Reports Net Profit of $0.02 per Share for the First Quarter of Fiscal 2009
WASHINGTON, NC--(Marketwire - November 14, 2008) - Fountain Powerboat Industries, Inc.
(AMEX: FPB), a leading manufacturer of high performance sport boats, fish
boats and express cruisers, today announced the results of its fiscal 2009
first quarter, ended September 30, 2008.
Net Sales
Net sales for the first quarter were $17.6 million, compared to sales of
$18 million for the first quarter of fiscal 2008.
"The continued decline in the domestic marine market is due to economic
conditions and tightening credit availability, with the international
market showing signs of weakening," stated Fountain's founder and CEO
Reginald M. Fountain, Jr. "We are pleased that the first quarter results
are comparable to last year's first quarter, but expect the remainder of
the year to be challenging. We are reducing costs in anticipation of the
continued decline in the economy."
Operating Profit
Operating profit for the first quarter of fiscal 2009 was $349,543, versus
an operating profit of $638,470 for the first quarter of fiscal 2008.
Net Profit
Net profit for the first quarter of fiscal 2009 was $81,769, or net
earnings per share of $0.02 on a basic and diluted basis, versus a net
profit of $273,340, or net profit per share of $0.06 on a basic and diluted
basis, for the first quarter of fiscal 2008.
About Fountain Powerboats, Inc.
Fountain Powerboats, Inc., a subsidiary of Fountain Powerboat Industries,
Inc., has its executive offices and manufacturing facilities along the
Pamlico River in Beaufort County, North Carolina. The company designs,
manufactures and sells offshore sport boats, sport fishing boats and
express cruisers that target the segment of the recreational power boat
market where speed, performance, safety and quality are the main criteria
for purchase. These recreational boats are based upon an innovative,
award-winning design enabling world class performance while using standard
reliable power. There are currently 12 buildings located on 65 acres
totaling over 237,000 square feet accommodating 40 to 45 boats in various
stages of construction at any one time. The present plant site can also
accommodate up to 300,000 square feet of additional manufacturing space.
The land and buildings are wholly owned by Fountain Powerboat Industries,
Inc. and its subsidiary, Fountain Powerboats, Inc. For more information,
visit www.fountainpowerboats.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS:
Except for the historical information contained herein, this press release
contains forward-looking statements, including statements containing the
words "planned," "expects," "believes," "strategy," "opportunity,"
"anticipates" and similar words. Such forward-looking statements are
subject to known and unknown risks, uncertainties or other factors that may
cause the Company's actual results to be materially different from
historical results or any results expressed or implied by such
forward-looking statements. The potential risks and uncertainties,
include, but are not limited to, the cyclical nature of the marine industry
and current adverse conditions in the industry, higher than expected costs
to build boats, lower than expected future market demand for boats, the
volatile and competitive nature of the industry, the concentration of a
substantial percentage of the Company's sales with a few major dealers, the
loss of, or change in demand from, any of which could have a material
impact upon the Company; labor relations at the Company and at its
customers and suppliers; and the Company's single-source supply and
just-in-time inventory strategies for some critical boat components,
including high performance engines, which could adversely affect production
if a
single-source supplier is unable for any reason to meet the Company's
requirements on a timely basis, and changes in domestic and international
market conditions and foreign exchange rates. We assume no obligation to
update any
forward-looking statements to reflect events or circumstances arising after
the date hereof. Further information on the factors and risks that could
affect Fountain Powerboat Industries, Inc.'s business, financial condition
and results of operations are included under the "Risk Factors" or "Factors
Affecting Our Operating Results" sections of Fountain Powerboat Industries,
Inc. public filings with the Securities and Exchange Commission, available
at (http://www.sec.gov).
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2008 2008
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 925,885 $ 1,445,270
Restricted cash and cash equivalents 783,595 --
Accounts receivable, net 3,831,056 4,283,791
Inventories 6,023,213 7,942,384
Prepaid expenses 811,282 631,108
------------ ------------
Total Current Assets 12,375,031 14,302,553
Property, Plant & Equipment 55,128,484 54,777,765
Less: Accumulated Depreciation (36,091,516) (35,455,637)
------------ ------------
19,036,968 19,322,128
CASH SURRENDER VALUE LIFE INSURANCE 3,439,083 3,374,413
OTHER ASSETS 330,131 325,566
------------ ------------
TOTAL ASSETS $ 35,181,213 $ 37,324,660
============ ============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2008 2008
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities - long-term debt $ 822,865 $ 809,738
Notes payable 137,050 3,075,606
Accounts payable 3,313,301 4,791,853
Accrued expenses and other liabilities 1,208,241 1,264,079
Dealer incentives 5,860,389 5,618,766
Customer deposits 850,000 304,999
Allowance for boat repurchases 128,524 78,787
Warranty reserve 769,147 860,199
------------ ------------
Total Current Liabilities 13,089,517 16,804,027
LONG-TERM DEBT, less current maturities 21,931,715 20,428,948
OTHER LONG-TERM LIABILITIES -- 4,828
------------ ------------
Total Liabilities 35,021,232 37,237,803
STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 200,000,000
shares authorized, 4,844,275 shares issued
and as of September 30, 2008 and June 30,
2008 48,442 48,442
Additional paid-in capital 10,574,753 10,574,753
Accumulated deficit (9,123,060) (9,204,829)
Less: Treasury stock, at cost, 483,091
shares (981,223) (981,223)
Accumulated other comprehensive (loss) from
interest rate swap (358,931) (350,286)
------------ ------------
Total Stockholders' Equity 159,981 86,857
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 35,181,213 $ 37,324,660
============ ============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
---------------------------
September 30, September 30,
2008 2007
------------- ------------
NET SALES $ 17,588,040 $ 18,049,430
COST OF SALES 15,369,721 15,344,844
------------- ------------
Gross Profit 2,218,319 2,704,586
------------- ------------
EXPENSES:
Selling expenses 1,053,958 1,230,167
General and administrative expenses 814,818 835,949
------------- ------------
Total Expenses 1,868,776 2,066,116
------------- ------------
OPERATING INCOME 349,543 638,470
------------- ------------
NON-OPERATING INCOME (EXPENSE):
Other income (expense) 21,458 (101,722)
Interest (expense) (289,232) (263,368)
------------- ------------
Total Non-operating (expense) (267,774) (365,090)
------------- ------------
INCOME BEFORE INCOME TAXES 81,769 273,380
INCOME TAX EXPENSE -- 40
------------- ------------
NET INCOME $ 81,769 $ 273,340
============= ============
BASIC EARNINGS PER SHARE $ .02 $ .06
============= ============
WEIGHTED AVERAGE SHARES OUTSTANDING 4,361,184 4,844,275
============= ============
DILUTED EARNINGS PER SHARE $ .02 $ .06
============= ============
WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING
DILUTION 4,361,184 4,848,461
============= ============